The Analytical Overview of the Main Currency Pairs on 2018.01.18

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.22637

Open: 1.21850

% chg. over the last day: -0.66

Day's range: 1.21650 - 1.22160

52 wk range: 1.0492 – 1.2296

Yesterday, sales prevailed on the EUR/USD currency pair. The quotes fall exceeded 80 points. At the moment, the EUR/USD currency pair is in a sideways trend. Investors expect additional drivers. Today, important statistics from the United States will be published. Local support and resistance levels are 1.21700 and 1.22500. We recommend opening positions from these marks.

The news feed on 2018.01.18:

- Statistics on the real estate market in the US at 15:30 (GMT+2:00);
- The number of initial jobless claims in the US at 15:30 (GMT+2:00);
- Philadelphia Fed Manufacturing Index at 15:30 (GMT+2:00).

The signals of the indicators are different. The price has fixed between 50 MA and 200 MA, which are strong dynamic support and resistance levels.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell EUR/USD.

Stochastic Oscillator is in the overbought zone, the %K line is crossing the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.21700, 1.21250, 1.20500

Resistance levels: 1.22500, 1.23150

If the price fixes below the support level of 1.21700, we recommend you to consider selling of EUR/USD currency pair. The movement is tending potentially to 1.21250-1.21000.

Alternative option. If the price fixes above 1.22500, it is necessary to look for entry points to the market to open long positions. The target movement level is 1.22900-1.23150.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.37921

Open: 1.38233

% chg. over the last day: +0.23

Day's range: 1.38266 – 1.38435

52 wk range: 1.2014 – 1.3820

Yesterday, the trading on the GBP/USD currency pair was very active. However, the unidirectional trend was not observed. At the moment, the technical pattern on the GBP/USD currency pair is ambiguous. The key trading range is 1.38000-1.38650. We recommend opening positions from key support and resistance levels.

The MACD histogram is in the positive zone and continues to rise, which signals to buy GBP/USD.

Stochastic Oscillator is in the overbought zone, the %K line is crossing the %D line. There are no accurate signals.

Trading recommendations

Support levels: 1.38000, 1.37400, 1.36400

Resistance levels: 1.38650, 1.39300

If the price fixes below the round level of 1.38000, you need to look for entry points to the market to open short positions. The closest target for profit taking is the 1.37400 mark.

Alternative option. If the price fixes above the local resistance level of 1.38650, the further growth of GBP/USD is expected. The movement is tending potentially to 1.39150-1.39300.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.24176

Open: 1.24383

% chg. over the last day: +0.08

Day's range: 1.24280 - 1.24680

52 wk range: 1.2059 – 1.3795

Yesterday, a high trading activity and volatility were observed on the USD/CAD currency pair. The Bank of Canada published a decision on the monetary policy, according to which interest rates were raised by 25 basis points to 1.25%, as expected. At the moment, the technical pattern is ambiguous. The support and resistance levels are still 1.24100 and 1.24600, respectively. We recommend opening positions from these levels.

The news feed on 2018.01.18:

- ADP Nonfarm Employment Change in Canada at 15:30 (GMT+2:00).

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA, which are strong dynamic support and resistance levels.

The MACD histogram is located near the 0 mark and does not send signals.

Stochastic Oscillator is in the oversold zone, the %K line is crossing the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.24100, 1.23750

Resistance levels: 1.24600, 1.25000, 1.25500

If the USD/CAD quotes fix below the local support of 1.24100, we recommend considering sales. The movement is tending potentially to the level of 1.23750-1.23500.

An alternative may be the growth of the USD/CAD currency pair to the level of 1.25000-1.25500.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 110.449

Open: 111.295

% chg. over the last day: +0.81

Day's range: 111.150 – 111.260

52 wk range: 107.33 – 115.62

During yesterday's trading, there was a correction on the USD/JPY currency pair. The quotes growth exceeded 80 points. At the moment, the price is in a sideways trend. The trading instrument has the potential for further growth. The key trading range is 111.100-111.450. The positions should be opened from these marks. Investors expect additional drivers. We recommend paying attention to the US government bonds yield, as well as to the economic reports from the United States.

The news feed on economy of Japan is calm.

The price has fixed between 50 MA and 200 MA, which are strong dynamic support and resistance levels.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 111.100, 110.700, 111.300

Resistance levels: 111.450, 111.850

If the price fixes above the resistance level of 111.450, further growth of the USD/JPY currency pair is expected. The movement is tending potentially to 111.850-112.000.

Alternatively, the USD/JPY quotes may drop to the level of 110.600-110.450.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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